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| 7/8 |
| 2007/8/1-3 [Reference/Tax] UID:47496 Activity:kinda low |
8/1 My ADP paycheck this period shows I have $200 less Social Security
Tax deducted from my paycheck (from ~$250 down to ~$50), as well as
a new item "Rsrefund" which gives me another extra ~$200. My total
pay this period is ~$200+~$200, or $400 more than my any other
periods. Why is this happening? I don't want to call ADP in case
they realize it and revert my extra $400 pay.
\_ There is a maximum income that is subject to SS tax, somewhere
north of $90k. Did you hit that?
\_ As a matter of fact, I believe I did! This is GREAT! Thanks
guys I was getting a bit worried. -op
\_ Specifically, it's 97.5K this year.
http://en.wikipedia.org/wiki/Payroll_tax#Social_security_and_Medicare_taxes
http://en.wikipedia.org/wiki/Payroll_tax
(Hey urltea nazi, you're only saving 2 characters by replacing
this URL.)
\_ Your url isn't the same one I shortened, you are missing
the bits after the #.
http://urltea.com/147c
(wikipedia.org)
\_ speaking of regressive taxes.
\_ $90k. That's about how much fits in a fridge, isn't it?
\_ If you are hitting $97.5K in July you shouldn't have financial
problems.
\_ I don't. I'm just happy to get more back.
\_ You make $160K+ per year and you don't know about
this? How can that be? |
| 7/8 |
|
| en.wikipedia.org/wiki/Payroll_tax#Social_security_and_Medicare_taxes or taxes directly related to employing a worker paid from the employer's own funds: these may be either fixed charges or proportionally linked to an employee's pay. The employer is required to contribute an additional 20% of the total payroll value to the Social Security system, and depending on the company's main activity, must also contribute to federally-funded insurance and educational programs. There is also a required deposit of 8% of the employee's wages into a bank account that can only be withdrawn from when the employee is fired or certain other extraordinary circumstances (called a "Security Fund for Duration of Employment"). All these contributions amount to a total tax burden of almost 40% of the payroll for the employer and 15% of the employee's wages. National Insurance contributions are examples of the first kind of payroll tax, while Employers' National Insurance contributions are an example of the second kind of payroll tax. edit Social security and Medicare taxes Social security and Medicare taxes, also known as FICA taxes must be withheld from your employees' wages. As an employer, you must also pay a matching amount of FICA taxes for your employees. The employee must have 62% withheld from their wages for social security taxes and the employer pays a matching amount in social security taxes until the employee reaches the wage base for the year. The wage base for social security tax in 2006 is $94,200 and for 2007 increases to $97,500. Once that amount is earned, neither the employee or the employer owes any social security tax. The Medicare tax rate is 29% for the employee and the employer. The employer must withhold 145% of an employee's wages and pay a matching amount for Medicare tax. Unlike the Social security tax, there is no maximum wage base for the Medicare portion of the FICA tax. Both the employer and the employee continue to pay Medicare tax, no matter how much is earned. edit Unemployment taxes Each employer also must pay State and Federal Unemployment Taxes (SUTA and FUTA). The FUTA rate is 62% but normally nets to 08% because the employer is allowed to take a credit of up to 54% for SUTA taxes that it pays. This will be the case if the employer is eligible for the maximum credit. The wage base for FUTA is $7,000 (ie, the employer is liable for FUTA only on the first $7,000 of compensation paid to each employee per calendar year). Each state has different rate, so that employers must consult the state requirements for each applicable state regarding tax rates and maximum wage base. Many states require new business to have an average starting rate until an employment history is created. For example, Indiana requires new employers to pay 27% for the first 3 years. Afterwards the rate is adjusted depending on various factors, such as whether an ex-employee files a request for unemployment benefits. |
| en.wikipedia.org/wiki/Payroll_tax or taxes directly related to employing a worker paid from the employer's own funds: these may be either fixed charges or proportionally linked to an employee's pay. The employer is required to contribute an additional 20% of the total payroll value to the Social Security system, and depending on the company's main activity, must also contribute to federally-funded insurance and educational programs. There is also a required deposit of 8% of the employee's wages into a bank account that can only be withdrawn from when the employee is fired or certain other extraordinary circumstances (called a "Security Fund for Duration of Employment"). All these contributions amount to a total tax burden of almost 40% of the payroll for the employer and 15% of the employee's wages. National Insurance contributions are examples of the first kind of payroll tax, while Employers' National Insurance contributions are an example of the second kind of payroll tax. edit Social security and Medicare taxes Social security and Medicare taxes, also known as FICA taxes must be withheld from your employees' wages. As an employer, you must also pay a matching amount of FICA taxes for your employees. The employee must have 62% withheld from their wages for social security taxes and the employer pays a matching amount in social security taxes until the employee reaches the wage base for the year. The wage base for social security tax in 2006 is $94,200 and for 2007 increases to $97,500. Once that amount is earned, neither the employee or the employer owes any social security tax. The Medicare tax rate is 29% for the employee and the employer. The employer must withhold 145% of an employee's wages and pay a matching amount for Medicare tax. Unlike the Social security tax, there is no maximum wage base for the Medicare portion of the FICA tax. Both the employer and the employee continue to pay Medicare tax, no matter how much is earned. edit Unemployment taxes Each employer also must pay State and Federal Unemployment Taxes (SUTA and FUTA). The FUTA rate is 62% but normally nets to 08% because the employer is allowed to take a credit of up to 54% for SUTA taxes that it pays. This will be the case if the employer is eligible for the maximum credit. The wage base for FUTA is $7,000 (ie, the employer is liable for FUTA only on the first $7,000 of compensation paid to each employee per calendar year). Each state has different rate, so that employers must consult the state requirements for each applicable state regarding tax rates and maximum wage base. Many states require new business to have an average starting rate until an employment history is created. For example, Indiana requires new employers to pay 27% for the first 3 years. Afterwards the rate is adjusted depending on various factors, such as whether an ex-employee files a request for unemployment benefits. |
| urltea.com/147c -> en.wikipedia.org/wiki/Payroll_tax#Social_security_and_Medicare_taxes or taxes directly related to employing a worker paid from the employer's own funds: these may be either fixed charges or proportionally linked to an employee's pay. The employer is required to contribute an additional 20% of the total payroll value to the Social Security system, and depending on the company's main activity, must also contribute to federally-funded insurance and educational programs. There is also a required deposit of 8% of the employee's wages into a bank account that can only be withdrawn from when the employee is fired or certain other extraordinary circumstances (called a "Security Fund for Duration of Employment"). All these contributions amount to a total tax burden of almost 40% of the payroll for the employer and 15% of the employee's wages. National Insurance contributions are examples of the first kind of payroll tax, while Employers' National Insurance contributions are an example of the second kind of payroll tax. edit Social security and Medicare taxes Social security and Medicare taxes, also known as FICA taxes must be withheld from your employees' wages. As an employer, you must also pay a matching amount of FICA taxes for your employees. The employee must have 62% withheld from their wages for social security taxes and the employer pays a matching amount in social security taxes until the employee reaches the wage base for the year. The wage base for social security tax in 2006 is $94,200 and for 2007 increases to $97,500. Once that amount is earned, neither the employee or the employer owes any social security tax. The Medicare tax rate is 29% for the employee and the employer. The employer must withhold 145% of an employee's wages and pay a matching amount for Medicare tax. Unlike the Social security tax, there is no maximum wage base for the Medicare portion of the FICA tax. Both the employer and the employee continue to pay Medicare tax, no matter how much is earned. edit Unemployment taxes Each employer also must pay State and Federal Unemployment Taxes (SUTA and FUTA). The FUTA rate is 62% but normally nets to 08% because the employer is allowed to take a credit of up to 54% for SUTA taxes that it pays. This will be the case if the employer is eligible for the maximum credit. The wage base for FUTA is $7,000 (ie, the employer is liable for FUTA only on the first $7,000 of compensation paid to each employee per calendar year). Each state has different rate, so that employers must consult the state requirements for each applicable state regarding tax rates and maximum wage base. Many states require new business to have an average starting rate until an employment history is created. For example, Indiana requires new employers to pay 27% for the first 3 years. Afterwards the rate is adjusted depending on various factors, such as whether an ex-employee files a request for unemployment benefits. |